Floor Trading

Cryptocurrency exchange trading refers to transactions between cryptocurrencies that take place within an exchange without being broadcast or confirmed on the blockchain. The exchange sets up an internal account for each cryptocurrency and provides users with an external address from which they can deposit or withdraw cryptocurrencies to the account. When users trade between cryptocurrencies within an exchange, the exchange only needs to update the account's balance on its internal ledger without sending any transactions on the blockchain. This way, users can complete transactions instantly without waiting for blockchain confirmation or paying miner fees.

How to Do Floor Trading?

1. Choose a trusted and safe cryptocurrency exchange, such as Binance, and register an account there.

2. Create an internal account within the exchange for the cryptocurrency you want to trade, and provide an external address for the account.

3. Deposit or withdraw cryptocurrency to your internal account from this address, or exchange fiat or other cryptocurrencies for your desired cryptocurrency.

4. On the exchange's floor trading platform, select the cryptocurrency pair you want to trade, such as BTC/USDT, ETH/BTC, etc.

5. Place a buy or sell order based on your expectations and strategy, and set the price and quantity.

6. Wait for your order to be accepted or matched by other users, or cancel your order.

7. After completing a transaction, you can view your balance and transaction history in your internal account, or withdraw your cryptocurrencies to another address.

Advantages of Floor Trading

• Fast: On-exchange transactions do not need to be broadcast and confirmed on the blockchain, so they can be completed instantly.

• Low fees: On-exchange transactions do not require mining fees or network fees on the blockchain, so costs can be saved.

• Low risk: On-exchange trading is not affected by congestion or attacks on the blockchain, so there is less chance of delays or failures.

• Privacy protection: On-site trading will not disclose the user's identity or transaction details on the blockchain. Only the exchange and the user themselves know the transaction situation, which can protect the user's privacy and security.

Disadvantages of Floor Trading

• Trust issues: Exchange trading requires trust that cryptocurrency exchanges will not cheat or be hacked, so you need to choose a platform that is reputable and secure.

• Limited options: On-exchange trading can only be done within the same cryptocurrency exchange, so one needs to adapt to the types of cryptocurrencies and exchange rates offered by the platform.

• Unclear regulations: On-exchange trading may be subject to unclear or inconsistent regulations in different countries or regions, and therefore may face legal risks or regulatory pressure.